The CEOs and corporate leaders are always on the lookout for new ways to combat change. Management of change and resulting realignment of business strategy and plans is therefore, a constant challenge. This paper attempts to look at management of change, with a different perspective. We focus on customer value and how to model it. What are the components of such value proposition? How does environment affect these components? And, in turn the business model? We attempt to analyze these issues. We propose a set of ten components of value-proposition in the Indian context. However, these are equally applicable in any business environment. The model proposed by us is generic and can be utilized by any industry vertically.
The current business scenario is very turbulent and with new businesses emerging from radical ideas, the very base on which a firm had been thriving is threatened. Or is it? This study attempts to view the meaning of business i.e., to answer questions like "why a firm should exist", "what value is the business creating", etc. Viewing the forest before the trees is imperative in such fundamental reasoning. It also helps in establishing a common platform for the reader to understand the issues discussed in the latter part of the paper better.
This paper deals with analyzing the business through a value perspective. All along, the business has been viewed in terms of monetary value, as it is the most easily identifiable value creation. In fact, business plans elaborate this aspect traditionally. Though it is perfectly fine to eye for profits, the businesses have shifted their focus from products to services and now more customized form of services. This has resulted in the firms from being product-centric to becoming more customer-centric. Hence, this study aims at determining the customer value from a firm's offering which ultimately leads them to purchase and how to model the same. Once a model is available, companies can utilize it for effective change management. An overview of our approach is depicted in Figure 1.
All businesses have to have some logic for their existence. This is one of the issues that are addressed by a business model. What exactly does a business model mean? This term caught the fascination of many researchers during the Internet boom, as the writer Michael Lewis put it "to glorify all manner of half-baked plans". Hence, to understand the term better, it's worthwhile to examine and discuss the relevant works carried out by leading researchers worldwide. |
